26.10 Assumption Violation

26.10.1 Endogenous Timing

If the timing of units can be influenced by strategic decisions in a DID analysis, an instrumental variable approach with a control function can be used to control for endogeneity in timing.

26.10.2 Questionable Counterfactuals

In situations where the control units may not serve as a reliable counterfactual for the treated units, matching methods such as propensity score matching or generalized random forest can be utilized. Additional methods can be found in Matching Methods.